FHA Book
Expert Source on FHA Loans
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Quick Hits
These are both kind of “Tell-Me-Something-I-Don’t-Know” stories for those of us who keep up on lending/FHA news. But, just so you can see who is reporting what:
There should be no lessening of the down payment requirements on FHA loans. Let’s get real here; any buyers who cannot make the sacrifices necessary to make less than a 3% down payment are probably not going to succeed the first time something goes wrong after they are in the house. I have seen clients sell cherished items, take extra jobs, go on mind-bending budgets, all for the purpose of saving for their down payment, and I have had nothing but respect and admiration for their willingness to do it. There is nothing wrong with expecting buyers to STEP UP with a down payment, particularly if you remember that they are eligible to receive it as a gift! Haven’t we learned anything about our mistakes?
If you can’t budget and save for a down payment, or get the money from your family, you aren’t ready to buy a house yet.
And as long as I’m on a tear, the DAPs should be outlawed! They are the biggest Ponzi scheme in a while.